Fertilizers

HOUSTON (ICIS)–US fertilizer producer CF Industries confirmed it had an accident on 2 October at their nitrogen fertilizer complex in Donaldsonville, Louisiana, which resulted in an employee being transferred to a local hospital where they later passed away. The company said through a spokesperson that the incident occurred at approximately 13:45 and that the medical personnel onsite did quickly respond and assessed the injuries, with the individual then transported to a nearby hospital. CF is not identifying the worker or providing any additional details surrounding the circumstances of the accident but said it is focused on supporting this individual’s family and fellow employees at the fertilizer complex. “We are deeply saddened to confirm that a CF Industries employee at the Donaldsonville Complex passed away in a local hospital following an accident onsite earlier today. Our thoughts and prayers are with their family at this difficult time. We are committed to supporting the family as well as providing assistance to the Donaldsonville team,” said a CF Industries spokesperson. The producer did add that this was an isolated incident with no related operational issues or offsite impacts. Located on the Mississippi River in Ascension Parish, the Donaldsonville site is the largest production complex in the world producing anhydrous ammonia, urea, and urea ammonium nitrate (UAN) and nitric acid.

03-Oct-2024

HOUSTON (ICIS)–Australian fertilizer firm Minbos Resources, who is advancing the Cabinda Phosphate project in Angola, announced the $14 million loan facility agreement with the International Development Corporation of South Africa Limited (IDC) has been executed. The company said the loan proposal is awaiting credit committee approval, which it said is proceeding favorably, with the completion of the documentation and the normal legal and regulatory processes expected to take several months. “The company is now in a great funding position with a complementary mix of funding solutions to advance the Cabinda Phosphate project. It is wonderful to have the support of the South African IDC for this important project in Sub-Saharan Africa,” said Lindsay Reed, Minbos Resources managing director. “We are receiving tremendous support from some of Angola’s most important banking and investment institutions, which is a testament to the project’s importance for agriculture in Angola. I would like to thank all parties for their continued support in our endeavors.” The Cabinda project, located in northeast Angola, is being developed based on an initial name plate capacity of 150,000 tonnes/year of enhanced phosphate rock with initial production calculated at 50,000 tonnes/year. Previously Minbos said expansion will come in two stages with it planning to add a second and third granulation circuit to reach a name plate capacity of 450,000 tonnes/year after 8 years of operations.

02-Oct-2024

HOUSTON (ICIS)–Fertilizer developer American Potash announced the US Bureau of Land Management (BLM) has approved their plan of operations at the Green River project in Utah, including issuing 11 prospecting permits and authorizing four exploratory drill holes. The company now has federal potash exploration permits and has a total of 7 exploratory drill holes authorized and is positioned for confirmation drilling, with expectations that will validate a high-grade potash potential estimated to be between 600 million to 1 billion tonnes of sylvinite. Another outcome is American Potash intends to establish an initial resource for not only potash but also lithium and potential by-products. The project is located 20 miles northwest of Moab, Utah, within the state’s Paradox Basin, which is one of only eight designated potash Super Basins globally with a long history of potash production. The company said recent development work has also validated the location’s potential as one of the largest domestic sources of lithium in the US. “This is a huge step for the company and the culmination of a process lasting several years. It positions the company to be able to drive forward with its business plan to confirm and validate historic data and targets, and to leverage the benefit of nearby production and neighboring development work, through the drill-bit,” said Simon Clarke, American Potash president and CEO. “We now have complete coverage for potash and lithium exploration across our acreage at a time when global events are driving home the need for domestic sources of potash and lithium to secure food and energy independence. We are now positioned to fully validate the strategic potential of our Green River project.”

02-Oct-2024

HOUSTON (ICIS)–As port operations along the East Coast and Gulf Coast came to a halt amid a union strike underway, the US fertilizer industry was carefully watching the labor developments but is not overly concerned about the situation having an immediate impact on activities or price direction. Part of this outlook on the port problem comes from a perspective of fertilizer participants that the work stoppage will be short in duration as the economic consequences will be severe if protracted. This latest labor disruption began when union International Longshoremen's Association (ILA) rejected the latest wage offer by employers’ group United States Maritime Alliance (USMX). This commenced a strike at 36 ports stretching from Maine to Texas, and although the labor talks were said to be continuing there was no further progress reported as of late on 1 October. Also, the US fertilizer sector recently experienced the Canadian rail strike, which did provoke some steep concerns before it was quickly resolved so there is thought this situation could follow a similar course and end with a quick resolution. There are some thoughts this strike could be settled within a few days, although the government has indicated that it will not intervene in the situation. An industry participant echoed the overall outlook in saying “if the short term is like that, I do not expect any fertilizer related issues.” Domestic fertilizer prices should not see any immediate escalation because of this strike activity because demand is still fairly limited following the recent hurricanes and with the ongoing harvest progress. In addition, most of those volumes to be used in the coming weeks for end of the year applications, or stockpiled for next spring, saw the majority of movement over the last part of summer and now are mostly in place already. US producers did not immediately respond to a request for comment but Canadian fertilizer major Nutrien said that while the strike might not have any consequences directly for their operations, there is concern over the larger repercussion if this stoppage turns lengthy. “As the world’s largest supplier of crop inputs and services, Nutrien depends on reliable supply chains to serve North American and offshore customers,” said a Nutrien spokesperson. “While the East Coast port strike is not expected to materially impact our shipments, any extended disruption will be felt more broadly in the supply chain, and we urge parties to dispute to achieve a timely resolution.”

01-Oct-2024

HOUSTON (ICIS)–Canadian fertilizer major Nutrien confirmed it is in the process of restarting its Augusta, Georgia, facility. The operation which produces several products including ammonia and urea was shut down after Hurricane Helene made landfall under safety protocols during storm induced power failures. “I can confirm that Augusta is in start-up and expected to be back online later in the week,” said a Nutrien spokesperson. The plant’s annual production capacity is listed at 765,000 tonnes of ammonia, 415,000 of ammonia nitrate, 400,000 tonnes of UAN and 260,000 tonnes of urea. The producer had said on 30 September all their colleagues were safe at their locations but that in many areas, the roads had remained closed due to downed power lines and flooding. Further Nutrien did expect that it could take several days before their full post storm assessment was completed.

01-Oct-2024

HOUSTON (ICIS)–The US fertilizer industry along with their agricultural counterparts were trying to assess damages and determine how long activities might be limited or even remain halted as Hurricane Helene delivered a mighty strike with intense winds and tremendous rainfall leading to historic flooding. Across several southeastern states the severity of the impacts affected plant operations and loadings with confirmed issues in Florida, Georgia and North Carolina with some damage reported at the port in Tampa, Florida, which did reopen on 29 September. There was also localized flooding within the city and surrounding communities but the fertilizer hub with its vital production, storage and logistical assets missed the full wrath of the hurricane, which had rapidly intensified before making landfall. Producer Mosaic had earlier informed that it did experience some issues with its operations in Florida as there was water intrusion at its Riverview site, which was caused by storm surge that has left the facility offline. A site cleanup must be undertaken so the operations are not anticipated to see a return to full capacity for about 10 days, but Mosaic did not respond for further comment on whether it had experienced any other impacts to its business activities. Canadian fertilizer major Nutrien said it is still evaluating the total impacts of the hurricane landfall but while its Aurora facility in North Carolina experienced heavy rainfall, the facility did not close during the event and is fully operational. The producer said it did undertake precautionary measures at other sites. “Following Hurricane Helene’s landfall last Friday, Nutrien’s Augusta, Georgia, and White Springs, Florida, facilities were shut down under safety protocols during storm-induced power failures,” said a Nutrien spokesperson. “All our colleagues are safe at these locations, but many area roads remain closed due to downed power lines and flooding. It could be several more days before a post-storm assessment is complete.” For fertilizer interests overall there was optimism that while the storm potentially wiped out what crops had not been finished in some locations, it should not have a lingering sway on upcoming demand or supply availability once flooding recedes and acreage dries as there is still plenty of acreage left to complete. As an industry source said, “I don't think it matters at all. We just need some more harvesting so farmers can think about application.” Corn harvest is now 21% complete, while soybeans have reached 26%. While September has been treading a tad slower than normal, with repeated tropical weather threats a key factor, there was sentiment that when looking ahead at October there will be more traction forward for some products. As a trader said, “I think prices will move up on UAN [urea ammonium nitrate] because of the supply disruptions but hard to say how much. Phosphate is probably the most bullish out of everything, urea doesn't really have an impact." The extent of crop damage will not be clear for at least several days, maybe longer. The concern is still that a reduction in yield means a drop in income back to the grower who then will have more pressure on how to manage upcoming input expense.

30-Sep-2024

SAO PAULO (ICIS)–The port at Tampa in the US state of Florida reopened over the weekend, the port’s authorities said on Sunday, after Hurricane Helene's destructive path put the US state of Florida against the ropes. Recovery efforts were underway in Florida as well as states to the north such as South Carolina, Georgia, North Carolina, Virginia and Tennessee. The hurricane’s death toll surpassed 100 over the weekend, while some analysts have said Helene’s economic impact could stand at up to $160 billion. Meanwhile, the US Bureau of Safety and Environmental Enforcement (BSEE) estimated on Sunday that approximately 3.35% of oil production and 0.91% of natural gas production in the US Gulf Coast were shut-in when it issued that update. Some railway lines, meanwhile, remained shut in and out of Florida, but companies managed to bring back to operation the most important routes over the weekend. TAMPA RETURNSThe Port of Tampa was the most affected by the hurricane, which made landfall on 27 September in the Big Bend area of Florida where the port is situated; more than 4 million Floridians lost power right after it made landfall. Other ports affected were Panama City, St Joe, St Petersburg, Manatee and Key West on Florida's west coast; Fernandina, Jacksonville and Canaveral on Florida's east coast. All of them have now returned to normal. “Port Tampa Bay has resumed vessel operations and our port’s shipping channels are officially re-opened, with vessel movements restricted to daylight hours… Our hope is that the port's shipping channels will be functional at their full depths shortly,” said the Port Tampa Bay authority on Sunday. “Port staff fully assessed the docks, wharfs and terminals for safety. Commercial vessel traffic is again being queued for a return to full operations at the port, meaning we are open for business. Some of the first vessels to return will be fuel tankers, cruise ships and vessels carrying perishable cargo.” The hurricane was expected to disrupt the movement of fertilizers and grain coming in and out of Tampa, as well as some companies’ operations in the area which are expected to remain shut for a few days. Some petrochemicals end markets such as plastic bales, with collection across much of the south and southeast of the US expected to be delayed. GULF COAST OIL, GASThe US’s BSEE said no personnel had been evacuated from any of the five non-dynamically positioned (DP) rigs operating in the Gulf Coast; rigs can include several types of offshore drilling facilities including jackup rigs, platform rigs, all submersibles and moored semisubmersibles. “A total of one DP rig moved off location out of the storm’s path as a precaution. This number represents 4.76% of the 21 DP rigs currently operating in the Gulf. DP rigs maintain their location while conducting well operations by using thrusters and propellers,” said the BSEE. “These rigs are not moored to the seafloor, so they can move out of harm’s way in a relatively short time frame. Personnel remain on board and return to the original location once the storm has passed.” BSEE said the 3.35% shut-in oil production could correspond to around 59,000 barrels of oil per day, while the 0.91% of shut-in gas production would correspond to 17 million cubic feet per day. It added that facilities are to be inspected in coming hours following the hurricane, adding “production from undamaged facilities will be brought back online immediately” although those with damage may naturally take longer to bring back online. RAIL DISRUPTIONS Railroad company CSX said all railways in Florida had now reopened except for two: the Clearwater and Brooksville Subdivisions. “CSX continues to work around the clock… The storm… left significant rain and wind damage in its path, resulting in flooding, downed trees and power outages. Over the weekend, we have made substantial progress in clearing the network and making necessary repairs,” said the rail operator. “However, potential delays remain. We are rerouting traffic to meet your needs and committed to fully restoring service as quickly and safely as possible.” Rail operator Norfolk Southern also said it had made substantial progress over the weekend in recovering railways affected by the storm, with its major routes in Florida and those connecting some key urban areas of the state with Tennessee and Georgia were also operational. However, it said some routes were still out of service as of Monday, including the line Macon-Brunswick; routes east and west of Asheville; Bluefield in West Virginia to Norton in Virginia; Augusta to Millen, in Georgia; and Augusta in Georgia to Columbia in South Carolina. “Customers with shipments moving through these areas that are currently out of service could see delays of 72 hours,” concluded Norfolk Southern. ONE OF THE MOST DAMAGINGOn Monday, analysts at AccuWeather said they were sharply increasing their economic loss estimates from Helene to between $145 billion and $160 billion, around 50% higher than their prior estimate at between $95 billion and $110 billion. The analysts said the increase reflected the additional “grim damage reports” received over the weekend, which would make Hurricane Helene one of the costliest storms in US history because of the devastating storm surge, damaging winds and historic flooding. "The majority of homes and businesses in some communities are destroyed and some have been washed away. Bridges, roadways and other expensive and critical infrastructure have been heavily damaged or destroyed,” said AccuWeather. “Pictures and video from the scene, as limited as those reports have been due to ongoing major communication infrastructure damage, suggest one of the worst flooding disasters in US history, with tragically striking similarities in damage to other catastrophic floods such as flooding associated with Hurricane Katrina, the flooding from Hurricane Harvey and the Johnstown, Pennsylvania, Floods of 1889 and 1977.” ECONOMIC IMPACT FROM HURRICANESIn billion dollars Source: AccuWeather Front page picture: Aerial view of Tampa's port; archive image Source: Tampa Port Bay authority

30-Sep-2024

HOUSTON (ICIS)–Nearly a quarter of US oil production in the Gulf of Mexico remains shut in following Hurricane Helene, a government agency said on Friday. The following table shows the disruptions to US Gulf production that were caused by Helene, according to the Bureau of Safety and Environmental Enforcement (BSEE). Total % of US Gulf Oil, bbl/day 427,000 24.39% Gas, million cubic feet/day 343 18.46% Source: BSEE Total % of US Gulf Platforms evacuated 9 2.43% Rigs evacuated 0 0% Source: BSEE Helene has weakened to a tropical depression after making landfall on Thursday night as a powerful Category 4 hurricane on the northwestern coast of Florida. Since making landfall, the storm has knocked out power to millions, caused floods and produced record storm surges. It set new all-time tide gauge records in the Tampa Bay area, a hub for the fertilizer industry, according to the meteorological firm AccuWeather. Overall damage could be in the tens of billions of dollars, AccuWeather said. Such widespread power outages and floods will lower demand for plastics and chemicals. Afterwards, repairs should boost demand for paints, coatings and other plastics and chemicals used in construction.

27-Sep-2024

HOUSTON (ICIS)–More than 4 million outages were reported in the southeastern US on Friday after Hurricane Helene made landfall as a powerful Category 4 storm in northwestern Florida. The southeastern US does not have a lot of chemical production. But such widespread power outages, in addition to disruptions caused by flooding, will lower demand for plastics and chemicals more broadly. The power outages are concentrated in the US states of South Carolina, Georgia, Florida and North Carolina, according to the website poweroutage.us. Among the few chemical plants near Helene's landfall site are a crude sulphate turpentine refinery and a crude tall oil (CTO) refinery that Kraton owns in Panama City, Florida. Tall oil is a feedstock fatty acids, renewable diesel and sustainable aviation fuel (SAF). Kraton has not returned requests for comment in regard to its preparations for Helene. Since Helene made landfall, it has weakened into a tropical storm, with maximum sustained wind speeds of 45 miles/hour (75 km/hour), according to the National Hurricane Center. The following map shows its projected path. Source: National Hurricane Center PORT CLOSURESInbound and outbound traffic at Port Tampa Bay ceased ahead of the storm, and the port's shipping channels were closed. Tampa is an important hub for the US fertilizer industry, hosting corporate offices, trading, product storage, shipping and other logistical operations. Other port closures include Panama City, St Joe, St Petersburg, Manatee and Key West on Florida's west coast, as well as Fernandina, Jacksonville and Canaveral on Florida's east coast. ENERGY DISRUPTIONS The following table shows the disruptions to US Gulf production that were caused by Helene, according to the Bureau of Safety and Environmental Enforcement (BSEE). Total % of US Gulf Oil, bbl/day 441,923 25.25% Gas, million cubic feet/day 363.39 19.81% Source: BSEE Total % of US Gulf Platforms evacuated 27 7.28% Rigs evacuated 1 20% Source: BSEE The Gulf of Mexico accounts for 14% of US production of crude oil and 5% of total dry gas production, according to the Energy Information Administration (EIA). RAIL DISRUPTIONS Railroad company CSX planned to close its TRANSFLO terminals in Tampa and Tampa Port on Thursday. Railroad company Norfolk Southern said that customers with shipments moving through the southeast and mid-Atlantic should prepare for delays. RECONSTRUCTION AND CHEM DEMANDHurricane Helene's current path could put $5.64 billion worth of housing at risk to storm surge flooding, an insurance data company said on Wednesday. Nearly 25,000 residential properties in the Tallahassee and Homosassa Springs metropolitan areas are at risk, said CoreLogic. “Helene has the potential to become a once-in-a-generation storm,” said Jon Porter, chief meteorologist for the meteorology firm AccuWeather. It estimates that most of Florida and much of the southeastern US will be exposed to winds reaching 40-60 miles/hour. AccuWeather expects that most of Florida and all of the states of Georgia, South Carolina and North Carolina are at risk for tornados. For hurricanes in general, reconstruction can translate to increased demand for many chemicals and polymers. The white pigment titanium dioxide (TiO2) is used in paints. Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ethers, methyl ethyl ketone (MEK) and isopropanol (IPA). Blends of aliphatic and aromatic solvents are also used to make paints and coatings. For polymers, expandable polystyrene (EPS) and polyurethane (PU) foam are used in insulation. Polyurethanes are made of methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI) and polyols. High density polyethylene (HDPE) is used in pipe. Polyvinyl chloride (PVC) is used to make cladding, window frames, wires and cables, flooring and roofing membranes. Unsaturated polyester resins (UPR) are used to make coatings and composites. Vinyl acetate monomer (VAM) is used to make paints and adhesives. Thumbnail shows Helene before it made landfall. Image by National Hurricane Center.

27-Sep-2024

HOUSTON (ICIS)–Hurricane Helene made landfall Thursday night as a Category 4 storm in the northwestern part of the US state of Florida. The storm made landfall in the Big Bend region just east of the mouth of the Aucilla River, according to the National Hurricane Center at 23:20 Eastern time (3:20 GMT Friday). Maximum sustained winds were around 140 miles/hour. Helene was moving north-northeast, with a hurricane warning in effect for Anclote River to Mexico Beach. Big Bend is a sparsely populated region of Florida. However, a storm surge warning includes Tampa Bay, an important hub for the US fertilizer industry. Nearly 1 million customers in Florida were without power, according to tracker PowerOutage.us. PORT CLOSURESInbound and outbound traffic to Port Tampa Bay ceased ahead of the storm, and the port's shipping channels were closed. Port Tampa Bay is an energy products gateway for oil and gas, jet fuel and petroleum products, as well as fertilizers. It is also a gateway for construction and building materials. Other port closures include Panama City, St Joe, St Petersburg, Manatee and Key West on Florida's west coast, as well as Fernandina, Jacksonville and Canaveral on Florida's east coast. RAIL DISRUPTIONS Railroad company CSX planned to close its TRANSFLO terminals in Tampa and Tampa Port on Thursday. Railroad company Norfolk Southern said that customers with shipments moving through the southeast and mid-Atlantic should prepare for delays. RECONSTRUCTION AND CHEM DEMANDHurricane Helene's current path could put $5.64 billion worth of housing at risk to storm surge flooding, insurance data company CoreLogic said on Wednesday. Reconstruction following hurricanes can increase demand for many chemicals and polymers. Additional reporting by Al Greenwood

27-Sep-2024